How the CCC Blazed a Trail for Conservation and Education

Dec 22, 2011David Woolner

A new book details the history of a program that educated and employed millions of Americans and established one of our most precious resources.

A new book details the history of a program that educated and employed millions of Americans and established one of our most precious resources.

In a remarkable new book entitled Our Mark on this Land: A Guide to the Legacy of the CCC in America's Parks, Ren and Helen Davis remind us of just how powerful and long lasting visionary leadership can be. The book details the enormous impact that Franklin Roosevelt's Civilian Conservation Corps (CCC) had on our country, not only through the massive reforestation programs that resulted in the planting of over 3 billion trees, but also through the restoration and expansion of one our nation's most treasured public resources: our state and national parks.

Over the course of its 10-year history, the CCC employed over 3 million men in what the authors describe as the largest peacetime mobilization of manpower in U.S. history. What is perhaps even more remarkable is that this mobilization began within the first 100 days of FDR's administration, in the midst of the worst economic crisis in American history and at a time when there was little to no state apparatus to launch such a program. Moreover, like many of the New Deal programs, the CCC was multifaceted. It was designed to accomplish multiple goals simultaneously and was in fact much more than a conservation program. It was also a youth unemployment program, an urban assistance program, and -- as is largely unknown -- an educational program.

Within months of its inception, CCC administrations discovered that there was a critical need for technical training and, above all, basic literacy instruction. As such, CCC workers were also tasked with building their own classrooms where CCC employees could take remedial classes. As the CCC program progressed, more advanced instruction was offered in a variety of subjects, including mathematics and history, along with more basic technical and vocational training. These programs also helped to employ many jobless teachers. Over time, the educational mission of the CCC became extremely popular and by the late 1930s more than 90 percent of the CCC workers were enrolled in some sort of educational program.

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But it is the more tangible work of the CCC that is so magnificently catalogued in this book. As the Davises note, the legacy of the CCC lives on in hundreds of parks across the country. Here, CCC workers cut thousands of miles of trails, built innumerable bridges and roads, designed and constructed thousands of rustic cottages and other buildings, and helped transform the National Parks Service into a truly national agency. Most important, however, was the effect that the CCC had on the ethos of the nation. For in sponsoring what the authors call a "second golden age" of conservation, and by providing through their labor unprecedented access to our nation's wild places, the CCC fostered greater appreciation for the preservation and enhancement of our nation's natural resources. And as more recent scholarship reveals, it also helped sow the seeds of the modern environmental movement.

At a time when the United States is once again struggling with high unemployment and growing level of poverty, especially among the urban poor, launching a program like the CCC to help restore our nation's blighted and impoverished inner cities makes sense. Such a program could do much to help restore both the physical and ethical challenges we face as nation. It would also provide the millions of young people trapped in the despair of poverty with meaningful employment, a chance to further education, and the one thing that FDR was determined to provide above all else: hope for the future.

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute. He is currently writing a book entitled Cordell Hull, Anthony Eden and the Search for Anglo-American Cooperation, 1933-1938. He is also the co-author with Henry Henderson of FDR and the Environment.

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FDR's Response to Pearl Harbor: Economic Freedom as Vital National Security Policy

Dec 7, 2011David Woolner

In the aftermath of the day which will live in infamy, President Roosevelt understood that ensuring human rights, particularly the right to economic wellbeing, was the only way to stave off extremism.

Mr. Vice President, and Mr. Speaker, and Members of the Senate and House of Representatives:

Yesterday, December 7, 1941 -- a date which will live in infamy -- the United States of America was suddenly and deliberately attacked by naval and air forces of the Empire of Japan...

In the aftermath of the day which will live in infamy, President Roosevelt understood that ensuring human rights, particularly the right to economic wellbeing, was the only way to stave off extremism.

Mr. Vice President, and Mr. Speaker, and Members of the Senate and House of Representatives:

Yesterday, December 7, 1941 -- a date which will live in infamy -- the United States of America was suddenly and deliberately attacked by naval and air forces of the Empire of Japan...

The facts of yesterday and today speak for themselves. The people of the United States have already formed their opinions and well understand the implications to the very life and safety of our Nation...

No matter how long it may take us to overcome this premeditated invasion, the American people in their righteous might will win through to absolute victory...

Hostilities exist. There is no blinking at the fact that our people, our territory, and our interests are in grave danger.

I ask that the Congress declare that since the unprovoked and dastardly attack by Japan on Sunday, December 7, 1941, a state of war has existed between the United States and the Japanese Empire. -Franklin D. Roosevelt, December 8, 1941

It was 70 years ago today that the myth of American invulnerability came to a sudden and dramatic end. On that day, wave after wave of Japanese bombers attacked the sleeping base at Pearl Harbor and in their destruction helped usher in a new era in American and world history.

Like virtually all other Americans, FDR was shocked and outraged at the events that occurred that Sunday morning. But in other respects, the events at Pearl Harbor confirmed what he and many of his advisors already knew about the state of the world in the mid-20th century: It was a much smaller place. In an "air age," the distances across seemingly vast oceans had been dramatically reduced. If one looked at a map of the world from the perspective of the North Pole -- as FDR was wont to do -- the continents of the Eastern and Western Hemispheres seemed to almost touch one another.

These observations may seem commonplace to us today with our satellite communications and intercontinental ballistic missiles. But in 1941, they were quite profound and to a large extent reflected, as the historian Alan Henrikson has written, the "mental map" that Franklin Roosevelt had developed over years of interest in geography, map reading, and even the collecting of stamps from far-off lands.

FDR, in short, had a profound understanding of the physical make-up of the planet. As such, he tended to see the world as a single community made up of neighboring states inhabited by peoples who shared many of the same hopes and aspirations. He also believed that "people who are hungry and out of a job are the stuff of which dictatorships are made." One only had to look at the catastrophic decade of the 1930s, with its global economic crisis and the rise of fascism in Europe and Asia, for confirmation of this sad truth.

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For Roosevelt, then, the Second World War, as he called it, was as much about the perils of economic depravity as it was about blatant international aggression, for the latter was one of the by-products of the former. In a very real sense, therefore, the welfare of peoples living in the heretofore distant corners of the earth had a direct bearing on the welfare of the people of the United States. The war in fact proved beyond a doubt that the two were inextricably linked. The hardship suffered in one part of the world -- hardship that led to the creation of the most brutally aggressive regimes history had ever seen -- had now reaped its destruction upon America itself.

It was for these reasons that FDR implored the American people in their "righteous might" to not only help him "win through to absolute victory," but also to help create a world, as he said nearly a year before, founded on four essential human freedoms: Freedom of Speech and Expression, Freedom of Worship, Freedom from Want, and Freedom from Fear. For by helping to establish these rights, including the right to live free from hunger and fear -- "everywhere in the world" -- the United States would render itself far more secure and much less likely to have to face an even greater conflagration in the future.

In light of these revelations, FDR did all he could to convince the American people that the United States had to play an active role in world affairs. He felt it was critical that the "United Nations" -- the long forgotten name of the wartime alliance created just a few weeks after Pearl Harbor -- continue to strive for peace and prosperity after the war was over. He sought to work with our friends and allies to build the necessary institutions, such as the United Nations Organization, the International Monetary Fund, and the World Bank, to reorder the world's economic system and facilitate great power cooperation in the postwar world.

Of course, in the wake of Pearl Harbor, FDR also accelerated the build-up of American arms, including a massive expansion of the U.S. Army Air Force, and engaged in a significant restructuring of American defense and intelligence capabilities. This led to the creation of the Department of Defense, the Joint Chiefs of Staff, and the postwar Central Intelligence and National Security Agencies -- all designed to transform American foreign policy into what might best be called National Security Policy.

But in the long run, FDR understood that American military and economic power were not enough to provide the kind of security the American people desired in the wake of the day of infamy. Equally important was moral leadership -- the promotion and adherence to the rule of law, democratic values, and basic human rights, including the all-important right of every person to enjoy basic economic security.

Today, as we look around the globe, we can see that FDR's assessment of the basic hopes and aspirations of peoples the world over to live in a world based on his four fundamental human freedoms is as strong as ever. The evidence is clear in recent events in the Middle East, Moscow, and here at home in Zuccotti Park. The United States may face a future where our status as the world's leading economy may one day no longer be certain, but the values that inspired the valiant men and women who fought the Second World War can and should remain a beacon of hope to all those who aspire to live in a more prosperous and peaceful world.

As FDR reminded us seven decades ago: "Freedom means the supremacy of human rights everywhere. Our support goes to those who struggle to gain those rights or keep them... To that high concept there can be no end save victory."

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute. He is currently writing a book on U.S.-UK economic relations in the 1930s, entitled Cordell Hull, Anthony Eden and the Search for Anglo-American Cooperation, 1933-1938.

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A Feast for the 1%, a Famine for the One Third

Nov 23, 2011David Woolner

As we celebrate this Thanksgiving, we should remember that 100 million of our fellow citizens are struggling to get by.

[H]ere is the challenge to our democracy: In this nation I see tens of millions of its citizens -- a substantial part of its whole population -- who at this very moment are denied the greater part of what the very lowest standards of today call the necessities of life.

I see millions of families trying to live on incomes so meager that the pall of family disaster hangs over them day by day.

As we celebrate this Thanksgiving, we should remember that 100 million of our fellow citizens are struggling to get by.

[H]ere is the challenge to our democracy: In this nation I see tens of millions of its citizens -- a substantial part of its whole population -- who at this very moment are denied the greater part of what the very lowest standards of today call the necessities of life.

I see millions of families trying to live on incomes so meager that the pall of family disaster hangs over them day by day.

I see millions whose daily lives in city and on farm continue under conditions labeled indecent by a so-called polite society half a century ago.

I see millions denied education, recreation, and the opportunity to better their lot and the lot of their children.

I see millions lacking the means to buy the products of farm and factory and by their poverty denying work and productiveness to many other millions.

I see one-third of a nation ill-housed, ill-clad, ill-nourished.

-Franklin D. Roosevelt, January 20, 1937

Nearly three quarters of a century ago, Franklin Roosevelt rededicated himself and his administration to the creation of an America where the government and the people alike would strive to eliminate the destructive and unjust disparities of wealth that had wrought such great economic hardship that they threatened to undermine the very essence of our democracy. Thanks to this commitment, generations of Americans embraced the idea that, as President Obama once said, "in this country, hard work and responsibility should be rewarded by some measure of security and fair play."

But in a disturbing article published earlier this week, the New York Times took note of the growing number of Americans whose hard work and responsibility have not brought them the measure of economic security they deserve. Struggling with incomes that stand just above the poverty line, they are labeled the "near poor." This diverse group of individuals and families lives paycheck to paycheck under the constant threat of economic ruin, often working multiple jobs at low wages that have remained stagnant for decades. According to data that has yet to be published by the Census Bureau, the number of "near poor" in the United States has risen to 51 million individuals, which, as the Times reports, places approximately 100 million people, or one in three Americans, "either in poverty or in the fretful zone just above it."

The fact that one in three Americans now lives in poverty or just above the poverty line provides us with another distressing link between the Great Recession and the Great Depression. It harkens back to Franklin Roosevelt's Second Inaugural Address, when, after noting the nation's economic progress since the beginning of his first term, he challenged the American people to do better and join him in an effort to "paint out" from our national canvas the sight of "one third of a nation ill-housed, ill-clad, ill-nourished."

It was true, Roosevelt said, that since the day of his fist inauguration, the country had made great strides in reversing the downward economic spiral that had gripped the nation in paralyzing fear. Faced with an unprecedented economic catastrophe, the people of the republic had dedicated themselves "to the fulfillment of a vision -- to speed the time when there would be for all the people that security and peace essential to the pursuit of happiness." But, he went on, "our covenant with ourselves did not stop there. Instinctively we recognized a deeper need -- the need to find through government the instrument of our united purpose to solve for the individual the ever-rising problems of a complex civilization."

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In that purpose, he continued:

...we have been helped by achievements of mind and spirit... We have always known that heedless self-interest was bad morals; we know now that it is bad economics. Out of the collapse of a prosperity whose builders boasted their practicality has come the conviction that in the long run economic morality pays. We are beginning to wipe out the line that divides the practical from the ideal; and in so doing we are fashioning an instrument of unimagined power for the establishment of a morally better world.

This new understanding undermines the old admiration of worldly success as such. We are beginning to abandon our tolerance of the abuse of power by those who betray for profit the elementary decencies of life.

It is odd that in this time of Thanksgiving, one hears little about the millions of Americans trapped in or threatened by poverty or the need to fashion a society where the "elementary decencies of life" -- a job with a decent wage, access to health care and higher education -- are within the reach of all. It is even more perplexing that in a time of serious economic depravity, the focal point of our all-but-dysfunctional Congress is not how "to find through government the instrument of our united purpose" but how to obstruct the very sort of structural reforms needed to help average Americans secure better lives for themselves and their children.

Part of this stems from the blind faith that free market fundamentalists have falsely promoted as the solution to all of our problems and from the inordinate amount of money that now flows from Wall Street to Washington, creating a new Gilded Age where the 400 wealthiest individuals in the United States possess more wealth than the bottom 150 million combined. But another part of it stems from our own misguided perception of what constitutes wealth and progress. In this second Gilded Age, wealth and progress have come to mean one and the same thing -- the acquisition of an inordinate amount of capital or other assets by an individual, often obtained through mere financial transactions.

For Roosevelt, however -- and for much of his generation -- the definition of wealth and progress was much more in keeping with the spirit of Thanksgiving. "Happiness," as FDR famously said in his First Inaugural Address, "lies not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort." Four years later, he added that the "test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little."

For the 100 million citizens of our nation now struggling to keep a roof over their heads and food on the table, these words sadly offer little comfort, for it appears we have abandoned the noble effort of the Depression generation to paint the specter of poverty out of our national canvas.

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute. He is currently writing a book on U.S.-UK economic relations in the 1930s, entitled Cordell Hull, Anthony Eden and the Search for Anglo-American Cooperation, 1933-1938.

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2012: 1932 Redux?

Nov 8, 2011David Woolner

 

If Congress continues to obstruct efforts to revive the economy, today's incumbents may suffer the same fate as Herbert Hoover.

The country needs and, unless I mistake its temper, the country demands bold, persistent experimentation. It is common sense to take a method and try it: If it fails, admit it frankly and try another. But above all, try something. The millions who are in want will not stand by silently forever while the things to satisfy their needs are within easy reach.

 

If Congress continues to obstruct efforts to revive the economy, today's incumbents may suffer the same fate as Herbert Hoover.

The country needs and, unless I mistake its temper, the country demands bold, persistent experimentation. It is common sense to take a method and try it: If it fails, admit it frankly and try another. But above all, try something. The millions who are in want will not stand by silently forever while the things to satisfy their needs are within easy reach.

We need enthusiasm, imagination, and the ability to face facts, even unpleasant ones, bravely. We need to correct, by drastic means if necessary, the faults in our economic system from which we now suffer.

-Franklin D. Roosevelt, May 22, 1932

Seventy-nine years ago today, on November 8, 1932, the people of the United States elected Franklin D. Roosevelt President of the United States.  No one was absolutely sure what FDR would do as president, but everyone understood that the United States -- and much of the rest of the world -- was in deep trouble.

Since the start of the Great Depression three years earlier, unemployment had climbed above 20 percent, average annual family income had fallen by 40 percent, and thousands of banks had closed their doors, wiping out the savings of 9 million individual bank accounts. Roughly half of all the home mortgages in the United States were in default, with another 1,000 homes going under every day. American industry had all but collapsed. To take but one example, in 1929 United States Steel Corporation had 225,000 full-time employees; by the end of 1932 it had no full-time employees save its corporate officers and a mere handful of part-time workers. The same was true in the financial sector, where overall stock market values had declined by 85 percent since their high in September 1929.

The human side of this story is even more distressing. In its November 1932 issue, The Nation estimated that approximately 20 million Americans -- one sixth the total population -- were at risk of starvation during the coming winter. By the end of the year, more than 2 million homeless people were roaming the streets looking for work or relief, of which approximately 200,000 were children -- mostly boys under the age of 14. In the coal mining regions of West Virginia and Kentucky, over 90 percent of the young were already suffering from malnutrition, as were more than 160,000 young people in New York City.

In the face of such a devastating crisis, FDR came to the conclusion that the forces of the market place had failed to deliver basic economic security to millions upon millions of Americans. He rejected the laissez-faire ideology that dominated the 1920s and understood that the forces of greed and avarice -- led by what his cousin Theodore Roosevelt called "the malefactors of great wealth" -- had created such an imbalance in our economic system that without immediate, significant reform, the U.S. might find itself in the throes of a revolution. This became all too clear with the rise of fascism and other forms of totalitarianism in parts of Europe and Asia.

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In essence, FDR believed that for democracy to work, capitalism had to work -- not for the few, but for all. He dedicated himself to the idea that against the forces of "economic tyranny" that had brought about this great crisis, "the American citizen could only turn to the organized power of government."

It was out of this basic conviction that FDR launched the New Deal, not to destroy the free market system, but to save it. Under his guidance the American people embraced the notion that in a complex modern industrial society the government can and must serve as the primary instrument of social and economic justice. It was this simple philosophy that brought us Social Security, unemployment insurance, banking and financial reform, the minimum wage, the right of labor to organize, and a host of other reforms that fundamentally altered the relationship between the American people and their government. The New Deal also offered millions of unemployed the dignity of work -- the chance for the laborers, architects, artists, and engineers of this great nation to build much of the economic, artistic, and environmental infrastructure that we still enjoy today.

Above all, FDR understood -- as he said in his first inaugural -- that "this nation asks for action and action now." Thanks to the support he enjoyed among most congressional Democrats and a significant number of liberal Republicans, he was able to push through the most significant slate of legislative reforms in our nation's history. In doing so, he not only helped alleviate a great deal of economic suffering but also restored the American people's faith in democratic government.

There is no question that a good share of the support FDR received in his campaign for the White House in 1932 stemmed from his repeated calls for action and his criticism of the lack of initiative on the part the Hoover administration to meet the economic crisis. After more than two years of unemployment at or above 9 percent, the mood of the electorate today is not all that different than it was in 1932. Polls show a mixture of anxiety, despair, and frustration at Congress's refusal to pass common sense measures -- like President Obama's jobs bill -- that would offer some relief to the millions of unemployed Americans.

To date, the deficit hawks in Congress seem unconcerned about the cost of their obstructionism, but if 1932 is any guide, this may prove a risky strategy for the coming election. To paraphrase FDR, the American people may tire of a "hear-nothing, see-nothing, do-nothing government" -- except that this time they may take out their frustration not on the president, but on Congress.

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute. He is currently writing a book on U.S.-UK economic relations in the 1930s, entitled Cordell Hull, Anthony Eden and the Search for Anglo-American Cooperation, 1933-1938.

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After Violence in Occupy Oakland, Remembering FDR's Engagement with Another Occupation

Oct 28, 2011David Woolner

FDR engaged with the Bonus Army instead of cracking down. Today's mayors should take note.

The violence that broke out in Oakland earlier this week and the wounding of Scott Olsen, a Marine veteran, recalls a similar "occupy movement" involving veterans that took place in Washington at the onset of the Great Depression.

FDR engaged with the Bonus Army instead of cracking down. Today's mayors should take note.

The violence that broke out in Oakland earlier this week and the wounding of Scott Olsen, a Marine veteran, recalls a similar "occupy movement" involving veterans that took place in Washington at the onset of the Great Depression.

In 1932, thousands of unemployed World War I veterans, desperate from lack of work, converged on Washington, mostly by riding the rails, in support of a bill that would have allowed them to receive immediate cash payment of the war service "bonus" they were due in 1945. The veterans called themselves the "Bonus Army" or "Bonus Expeditionary Force." By the end of May of that year, more than 20,000 had occupied a series of abandoned buildings near the Washington Mall and a sprawling shantytown they built on the Anacostia Flats not far from the Capitol. On June 15, 1932, the House of Representatives passed a bill in favor of the veteran payments, but as both President Hoover and a majority in the Senate opposed it, the "Bonus bill" went down to defeat two days later.

In the wake of this defeat, roughly 15,000 members of the Bonus Army decided that they would continue their occupation as a protest against the government's decision. By late July, President Hoover decided it was time to clear the city of the protesters, using four troops of cavalry under the command of General Douglas MacArthur. Late in the afternoon of July 28, General MacArthur's troops -- with sabers drawn -- cleared the buildings near the Mall. They then fired tear gas among the men, women, and children encamped in Anacostia (many veterans were accompanied by their families); stormed the area on horseback, driving them out; and intentionally burned the shantytown to the ground in the process. More than 1,000 people were injured in the incident and two veterans and one child died.

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In attacking the shantytown, MacArthur had exceeded his orders, which were simply to clear the buildings and surround the camp so as to contain it. But this meant little to the public, who were outraged at the treatment the veterans had received at the hands of the government and furious at Hoover for ordering the operation. Hoover, nevertheless, remained publically unrepentant and refused to apologize to the veterans -- moves that contributed greatly to his massive loss to Franklin Roosevelt a few months later.

FDR, for his part, was disgusted by the whole affair. When a smaller group of about 3,000 Bonus Marchers converged on Washington with the same demand a year later, FDR took quite a different approach. Where Hoover had refused to meet with the protesters, FDR invited a delegation to come to the White House. He also provided the marchers housing in an unused army fort, made sure that they were given three meals a day plus medical attention, and sent Eleanor Roosevelt to engage them in further discussions and check on their condition. Not wanting to single out any group for special treatment, in the end he refused to support their demand for the early payment of their pensions. But the men were offered work in the newly formed Civilian Conservation Corps (CCC), which 90 percent accepted. Shortly thereafter the Bonus Marchers voted to disperse, and those that opted to return home rather than join the CCC were given free rail passage.

Perhaps the municipal authorities in Oakland, New York, and elsewhere might learn something from FDR. They could use a lesson on the value of dialogue and the benefits a government that is responsive to the needs -- if not the demands -- of its citizens.

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute. He is currently writing a book on U.S.-UK economic relations in the 1930s, entitled Cordell Hull, Anthony Eden and the Search for Anglo-American Cooperation, 1933-1938.

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FDR, Obama, and Occupy Wall Street: Time for Another New Deal?

Oct 20, 2011David Woolner

FDR didn't just extend his sympathies to protesters. He listened to their demands and worked to implement real solutions to their problems.

As the Occupy Wall Street protests that originated in lower Manhattan gain momentum, a good deal of speculation has arisen in the press. Will the protesters coalesce around a set of demands? Will President Obama and the Democratic Party embrace the movement? What impact will the protests, which have now spread to other parts of the country, have on the 2012 presidential election?

FDR didn't just extend his sympathies to protesters. He listened to their demands and worked to implement real solutions to their problems.

As the Occupy Wall Street protests that originated in lower Manhattan gain momentum, a good deal of speculation has arisen in the press. Will the protesters coalesce around a set of demands? Will President Obama and the Democratic Party embrace the movement? What impact will the protests, which have now spread to other parts of the country, have on the 2012 presidential election?

Although there has been some resistance to the idea of the movement adopting a formal agenda for reform, many of the demands and some of the rhetoric generated by the protesters echo similar calls for reform that emanated during the New Deal. Last Sunday evening, for example, it was reported that Occupy Wall Street's Demands Working Group had endorsed the idea of a New Deal-style public works program that would put millions of Americans on the government payroll rebuilding the nation's crumbling infrastructure. Another idea that has surfaced within the movement is the restoration of the Glass-Steagall Act.

What is most significant, however, is the possibility that the Occupy Wall Street movement might spur the Obama administration and Congress to embrace reform and take stronger government action to combat the current economic crisis. In this respect, it has the potential to mirror the powerful social justice movements that emerged during the 1930s -- movements that not only drew national attention to the great disparities in wealth between the rich and the poor in the United States, but also pushed the Roosevelt administration and Congress to adopt some of the most significant pieces of reform legislation in U.S. history. The passage of the all-important Wagner Act, which established a permanent National Labor Relations Board and enshrined the right of private sector workers to form unions, was inspired in large part by the more than 1,800 strikes that broke out in 1934. The Social Security Act, which provided an old-age pension and established unemployment insurance, was spurred on in part by the 2 million-member Townsend movement that put forward a tax and pension scheme that made it clear that the government had to do something to provide basic economic security for the elderly. For the millions of unemployed, who often took to the streets in frustration, Roosevelt created the Works Progress Administration, which put over 8.5 million Americans to work building the roads, bridges, airports, and schools that still make up a significant portion of our nation's economic infrastructure.

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President Obama has recently indicated that he sympathizes with the concerns of the Occupy Wall Street movement, but he has yet to embrace it. FDR was not nearly so circumspect. It is true that during his initial year in office, FDR -- much like President Obama -- adopted what can best be called national unity politics. This, coupled with his innate political caution and abhorrence for ideology, made him reluctant to join ranks with those who were in the streets demanding reform.

But as early as mid-1934, the president -- who in his heart of hearts agreed with the calls for more progressive government -- began to change his tune. In one of his famous Fireside Chats, delivered near the end of June 1934, FDR took note of the fact that in spite of the great progress that had been made stabilizing the economy and meeting the immediate crisis, it was time to look to the future -- time for the country "to find a way once more to well-known, long established but to some degree forgotten ideals and values," and time for the Government and Congress to "seek the security of the men, women and children of the nation." He continued:

That security involves added means of providing better homes for the people of the Nation. That is the first principle of our future program.

The second is to plan the use of land and water resources of this country to the end that the means of livelihood of our citizens may be more adequate to meet their daily needs.

And, finally, the third principle is to use the agencies of government to assist in the establishment of means to provide sound and adequate protection against the vicissitudes of modern life -- in other words, social insurance...

A few timid people, who fear progress, will try to give you new and strange names for what we are doing. Sometimes they will call it "Fascism," sometimes "Communism," sometimes "Regimentation," sometimes "Socialism." But, in so doing, they are trying to make very complex and theoretical something that is really very simple and very practical.

I believe in practical explanations and in practical policies. I believe that what we are doing today is a necessary fulfillment of what Americans have always been doing -- a fulfillment of old and tested American ideals.

In the coming 18 months, FDR -- inspired and motivated by the determination of the millions of Americans who embraced a number of mass movements demanding social and economic justice -- would launch his famous Second New Deal. It was a wave of legislation that, through such programs as Social Security and the Wagner Act, is still very much with us to this day.

As the Occupy Wall Street movement continues to grow, perhaps the president and our leaders in Washington should do more than merely extend their sympathy. Perhaps they should take a lesson from the New Deal and act to address the concerns of a new generation -- a generation that may not yet have articulated a specific set of demands, but one that is crying out for a government animated by the same spirit that stood at the heart of the New Deal, driven by the desire to provide social and economic justice for all.

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute. He is currently writing a book on U.S.-UK economic relations in the 1930s, entitled Cordell Hull, Anthony Eden and the Search for Anglo-American Cooperation, 1933-1938.

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FDR's Comprehensive Approach to Freer Trade

Oct 13, 2011David Woolner

Encouraging free trade was one part of the Roosevelt administration's broader effort to revive the global economy and create good jobs for all Americans.

Encouraging free trade was one part of the Roosevelt administration's broader effort to revive the global economy and create good jobs for all Americans.

The recent activity in the U.S. Senate on trade -- including the passage of three long-awaited trade bills on Wednesday and the passage of the Currency Exchange Rate Oversight Reform Act on Tuesday -- has revived a longstanding economic debate between the advocates of freer trade versus those who favor protectionism. Not surprisingly, with the United States suffering its worst economic crisis since the Great Depression and with unemployment still hovering at 9 percent, an increasing number of Democrats and Republicans, especially those representing manufacturing states, have come out in favor of protectionism. The fact that the passage of the three trade agreements -- with South Korea, Columbia, and Panama -- was linked to an extension of the Trade Adjustment Assistance program (a 50-year-old measure designed to provide assistance to workers displaced by foreign trade agreements) is but one indication of the increasingly protectionist mood in Congress.

A far more significant indication of the strength of protectionist sentiment can be seen in the broad bipartisan support for Tuesday's legislation aimed at punishing China for currency manipulation. Both Republican Senator Jeff Sessions and Democratic Senator Chuck Schumer, for example, have emerged as key champions of the bill. But other Republicans and Democrats have expressed strong reservations about the measure, noting that one possible outcome of the bill might be a trade war with China. In a recent editorial in the Wall Street Journal, Senator Robert Corker even went so far as to liken the bill with the passage of the 1930 Smoot-Hawley Tariff, which he argued resulted in a "deeper depression and a decade of increased joblessness."

Corker's reference to damage wrought by Smoot-Hawley is accurate. The passage of Smoot-Hawley did indeed touch off strong counter-measures among our trading partners, leading to the establishment -- among other things -- of the 1932 British system of Imperial Preference, which allowed goods within the British Empire to be traded with little or no tariff restriction, locking out American goods and commodities and in the process weakening the U.S. economy. What is missing from Senator Corker's warning is any reference to the tremendous effort that emerged during the Roosevelt administration to do away with protectionism; an effort that would ultimately not only break down the Smoot-Hawley Tariff, but which would also pave the way for the creation of the multilateral global economy we live in today.

The driving force behind this effort was FDR's Secretary of State, Cordell Hull, who considered the passage of Smoot-Hawley an unmitigated disaster. Hull had been arguing in favor of freer trade for decades, both as a Democratic congressman and later senator from Tennessee. Given the long-standing protectionist tendencies of Congress -- which reached their zenith with the passage of Smoot-Hawley, the highest tariff in U.S. history -- Hull faced an uphill struggle to accomplish this task. He also had to overcome FDR's initial reluctance to embrace his ideas, as the president preferred the policies of the "economic nationalists" within his administration during his first year in office. By 1934, however, FDR's attitude began to change, and in March of that year the president threw his support behind Hull's proposed Reciprocal Trade Agreements Act -- a landmark piece of legislation that fundamentally altered the way in which the United States carried out foreign economic policy.

Convinced that the country was not ready for a truly multilateral approach to freer trade, Hull's legislation sought to establish a system of bilateral agreements through which the United States would seek reciprocal reductions in the duties imposed on specific commodities with other interested governments. These reductions would then be generalized by the application of the most-favored-nation principle, with the result that the reduction accorded to a commodity from one country would then be accorded to the same commodity when imported from other countries. Well aware of the lingering resistance to tariff reduction that remained in Congress, Hull insisted that the power to make these agreements must rest with the president alone, without the necessity of submitting them to the Senate for approval. Under the act, the president would be granted the power to decrease or increase existing rates by as much as 50 percent in return for reciprocal trade concessions granted by the other country.

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The 1934 Act granted the president this authority for three years, but it was renewed in 1937 and 1940, and over the course of this period the United States negotiated 22 reciprocal trade agreements. Of these, the two most consequential were the agreements with Canada, signed in 1935, and Great Britain, signed in 1938, in part because they signaled a move away from Imperial Preference and hence protectionism, and in part because they were regarded as indicative of growing solidarity among the Atlantic powers on the eve of the Second World War. It is also important to note that Hull, like many of his contemporaries, including FDR, regarded protectionism as antithetical to the average worker -- first, because in Hull's view high tariffs shifted the burden of financing the government from the rich to the poor, and secondly, because Hull believed that high tariffs concentrated wealth in the hands of the industrial elite, who, as a consequence, wielded an undue or even corrupting influence in Washington. As such, both FDR and Hull saw the opening up of the world's economy as a positive measure that would help alleviate global poverty, improve the lives of workers, reduce tensions among nations, and help usher in a new age of peace and prosperity. Indeed, by the time the U.S. entered the war, this conviction had intensified to the point where the two men concluded that the root cause of the war was economic depravity.

Inspired by this sentiment, Congress renewed the RTAA again in 1943 and 1945. The U.S. would also champion the 1944 Bretton Woods Accords, which set up the International Monetary Fund and World Bank, and after the war, Hull's RTAA would go on to serve as the model for the negotiation of the 1947 General Agreement on Tariff and Trade (GATT), the critical institution upon which the modern global economy stands and the precursor to the World Trade Organization (WTO) established in 1995. Hence, it was U.S. reciprocal trade policy -- a policy that had changed little since its inception during the New Deal -- combined with a newfound determination to play a leading role in world affairs, that guided U.S. policymakers in the mid-1940s towards a new post-war international economic order -- an economic order still largely in operation to this day.

Of course, it is important to remember that the Roosevelt administration's efforts to expand world trade were accompanied by such critical pieces of legislation as the National Labor Relations Act and Fair Labor Standards Act, which vastly strengthened the place of unions in American life. The 1930s and '40s were also years in which the government engaged in an unprecedented level of investment in America's infrastructure and industry -- largely through deficit spending -- that helped vastly expand our manufacturing base and render the United States the most powerful industrialized country in the world. Our efforts to expand trade and do away with protection were only part of a broader effort to reform the U.S. economy in such a way as to provide what FDR liked to call "economic security" for every American.

This comprehensive approach, though not always pretty and sometimes contradictory, was nevertheless based on the simple principle that it is a fundamental responsibility of government -- even a liberal capitalist government -- to ensure that the free market is managed in such a way as to produce the greatest good for the greatest number of people, not the other way around. With 16 million Americans under- or unemployed, one would think that any moves to endorse freer international trade would be accompanied by an even stronger effort to create jobs here at home, but based on the Senate's recent rejection of President Obama's jobs bill, it seems highly unlikely that this will be the case.

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute. He is currently writing a book on U.S.-UK economic relations in the 1930s, entitled Cordell Hull, Anthony Eden and the Search for Anglo-American Cooperation, 1933-1938.

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"Action and Action Now": America Can't Afford to Waste Its Human Resources

Sep 6, 2011David Woolner

Desperate times call for bold measures. President Obama need look no further than the WPA.

Desperate times call for bold measures. President Obama need look no further than the WPA.

To those who say that our expenditures for Public Works and other means for recovery are a waste that we cannot afford, I answer that no country, however rich, can afford the waste of its human resources. Demoralization caused by vast unemployment is our greatest extravagance... I stand or fall by my refusal to accept as a necessary condition of our future a permanent army of unemployed... [W]e must make it a national principle that we will not tolerate a large army of unemployed and that we will arrange our national economy to end our present unemployment as soon as we can and then to take wise measures against its return. - Franklin D. Roosevelt

With unemployment still hovering at over 9 percent nationwide, and with some economists and historians arguing that the present economic crisis should not be referred to as the "Great Recession," but as the "Great Depression II," a good deal of anticipation has arisen over what President Obama will propose in his message to Congress on Thursday. Despite widespread Republican opposition to further government spending, many economists and business leaders -- not to mention liberal members of the Democratic Party -- argue that what the country desperately needs is another stimulus package. A jobs program could provide hope and relief to the millions of long-term unemployed, restore confidence, and stem the U.S. economy's steady slide back into recession. Even the ever demure Chairman of the Federal Reserve, Ben Bernanke, has indicated that "putting people back to work" must be made a priority if the country wishes to avoid long-term damage to the economy.

Just over 75 years ago, in the midst of a long-term unemployment crisis not unlike the one we face today, President Roosevelt issued Executive Order 7034 to create one of the largest federal employment programs in American history: the Works Progress Administration (WPA). Roosevelt created the WPA in part out of his conviction that when the private sector fails to provide basic economic security in the form of employment to millions of Americans, it is right and proper for the government to step in to pick up the slack. Like President Obama, FDR presided over an economy that was expanding, in fact at a much faster rate than the meager growth we see today. But the growth was not strong enough to absorb the many millions still looking for work. Even though the unemployment rate had fallen by more than five percent since his assumption of office in 1933, FDR was not content to sit on his laurels and wait for the long hoped for return to full employment. So the president did what the American people expected him to do: he took action.

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Over the course of its eight-year history, the WPA employed approximately 8.5 million people, the vast majority of whom worked on projects aimed at rebuilding America's wholly inadequate 19th century infrastructure. That infrastructure was marked by feeble bridges, unpaved roads, little or no water or sewage treatment facilities, and tens of thousands of decrepit schools and other public buildings. Thanks to this massive effort, millions of Americans (including engineers, architects, and other skilled workers) gained meaningful employment and through their labor transformed the face of the nation. In New York City alone, for example, the WPA constructed the Triborough Bridge, the Lincoln Tunnel, FDR Drive, LaGuardia Airport, and the Belt, Grand Central, and Henry Hudson Parkways. It also rebuilt the Central Park Zoo, landscaped Bryant Park and Hunter College, and built or renovated hundreds of schools throughout the city -- not to mention put thousands of unemployed city teachers back to work in the newly constructed classrooms.

As this incomplete list of projects for New York City alone shows, the WPA was no "make work" operation, but a national endeavor aimed at transforming the nation's economic infrastructure and bringing the United States into the modern world by making use of our most precious resource: human capital. By the time it was finished, the WPA had constructed nearly 600,000 miles of rural roads, 67,000 miles of urban streets, 122,000 bridges, 1,000 tunnels, 1,050 airfields, 500 water treatment plants, 1,500 sewage treatment plants, 36,900 schools, 2,552 hospitals, 2,700 firehouses, and nearly 20,000 other state, county, and local government buildings. It was also widely popular among working Americans who wrote tens of thousands of letters to the White House thanking the president for his determination to counter the demoralizing effects of unemployment.

The infrastructure built by the WPA and other New Deal agencies helped lay the basis for the massive economic expansion that took place during World War II and the post-war years. All of us have benefited immensely from this visionary effort to simultaneously rebuild America and the American workforce. But after roughly 70 years, much of this infrastructure is in desperate need of replacement or repair.

If the president and Congress are serious about meeting the worst economic crisis this nation has endured since the Great Depression, remaining competitive in the global economy, and avoiding the atrophy of skills that comes after years of an idle workforce, then they should embrace the opportunity to rebuild America and the American workforce with the same sort of bold vision that inspired an earlier generation. With infrastructure that is now ranked a dismal 23rd among the world's industrialized states, and with millions of skilled and unskilled workers in desperate need of a job, this is no time for half measures. In light of this, isn't it time for the president to establish his own jobs program -- by executive order if necessary -- and to insist that Congress provide the funds needed to support it? The American people would no doubt support such a move. They understand that the real crisis in America is a jobs crisis, exasperated by a failure of leadership in Washington and the false obsession of Republican party extremists with cutting government spending at a time when we can least afford it. They are also tired of crumbling roads, burst levees, and collapsed bridges. They have heard enough talk of cuts, cuts, cuts when, in the spirit of the New Deal, they would much rather heed a call to "build, baby, build." Surely, as FDR said in his first inaugural, the time has come for "action and action now."

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute.

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Obama Could Look to FDR to Tame Housing and Jobs Crises

Aug 25, 2011David Woolner

Unemployed and underwater, Americans need robust, FDR-style federal action.

Unemployed and underwater, Americans need robust, FDR-style federal action.

In a further indication of the weakness of the US economy, the Mortgage Bankers Association reported earlier this week that the number of Americans at risk of foreclosure is rising, while the number of mortgage applications to purchase a home has fallen to a 15-year low -- despite record low mortgage rates. The government also recently reported another sharp decline in the price of homes holding government-backed mortgages, by nearly six percent in the last quarter, the largest decline since 2009. In short, the housing crisis that played a key role in the initiation and perpetuation of the Great Recession is far from over and the risk that the ongoing trouble in the housing market will drag the country back into recession is becoming increasingly apparent.

In the face of these and other grim economic statistics, it has been reported that the Obama administration is considering further government action to help struggling homeowners keep their homes, including a proposal that would allow the millions of Americans who hold government-backed mortgages to refinance at today's historically low rates. The administration is also looking into the feasibility of a home rental program that would help keep hundreds of thousands of foreclosed homes off the market in an effort to stop home prices from falling further.

This is not the first time, of course, that the United States has faced a housing crisis. Nearly 80 years ago, President Roosevelt took office under circumstances not unlike those we face today. In 1933, for example, the non-farm foreclosure rate was running at roughly 1,000 homes per day, so that by the end of that year an estimated 50 percent of all urban mortgages in the US were either delinquent or in foreclosure. The number of housing starts had also fallen off dramatically, from a 1920s high of 937,000 in 1925 to only 93,000 in 1934.

To deal with the housing emergency and reverse this trend, the Roosevelt administration created the Home Owners Loan Corporation (HOLC) in June 1933. The HOLC -- which was a federal entity -- provided immediate relief to families facing foreclosure by buying out their existing mortgage and replacing it with a new one based not on the typical short-term mortgage agreement of the time (usually a non-amortized loan of seven to ten years terminating with a balloon payment), but rather on the far more affordable amortized mortgage of between 25 and 30 years. Over the course of its three-year history, the HOLC refinanced over one million homes or roughly 20 percent of all the urban mortgages in the country. Moreover, by the time the HOLC finally closed its books in 1951, it had turned a small profit, with the result that this remarkably successful mortgage program did not cost the U.S. taxpayer any money.

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In an effort to secure a long-term solution to the U.S. housing crisis, the Roosevelt administration passed the National Housing Act a year later. The housing act established the Federal Housing Administration (FHA), and through it significantly increased access to home ownership among average Americans by insuring loan institutions against default; by institutionalizing the 30-year amortized mortgage; and by establishing other standard criteria, such as the 10 percent down payment, building codes, and on-site inspections of new and existing homes for violations of the newly developed codes. The creation of the FHA had a tremendous impact on the US housing industry, increasing over home ownership from 40 percent in the 1930s to over 70 percent by the end of the century.

Like much of the New Deal, both of the efforts involved direct federal action inspired by a desire to provide both immediate relief and long-term reform. They were also part of a much broader effort to revive the overall economy -- spearheaded by the Roosevelt administration's determination to provide meaningful jobs to the millions of unemployed through such programs as the Works Progress Administration (WPA) and Civilian Conservations Corps (CCC), or the lesser-known Public Works Administration (PWA).

Given the inability of President Obama's Home Affordable Modification Program (HAMP) to reverse the decline in the housing market, it is encouraging to see that the administration is considering further measures to shore up this critical sector of our economy. One would hope that the administration might look towards the HOLC for inspiration as it moves towards further action. But as most economists predict -- and as the New Deal instructs -- a massive refinancing program on its own may not be enough to restore the housing market. What we really need is more jobs -- perhaps a modern version of the WPA -- to rebuild the nation's crumbling infrastructure and further funding for education and job training to restore our competitiveness in the world economy.

With the deficit doomsayers now in charge of our nation's agenda, and with the American public and media hoodwinked into believing that the best way to revive our economy is by cutting government spending, the likelihood of a new federally funded jobs program in the near future is close to nil. This is bad news for the millions of unemployed who will not be able to pay their mortgages -- no matter how low the interest rate -- without the one thing they desperately need: a paycheck.

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute.

 

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FDR Tackled a Jobs Crisis By Putting Americans to Work -- Not Handing Out Pinkslips

Aug 15, 2011David Woolner

History shows that we can effectively respond to high unemployment. But the real deficit in the U.S. today is leadership.

History shows that we can effectively respond to high unemployment. But the real deficit in the U.S. today is leadership.

"Our greatest primary task is to put people to work. This is no unsolvable problem if we face it wisely and courageously. It can be accomplished in part by direct recruiting by the Government itself, treating the task as we would treat the emergency of a war, but at the same time, through this employment, accomplishing great -- greatly needed projects to stimulate and reorganize the use of our great natural resources."

~Franklin D. Roosevelt, March 4, 1933

The economic news of the past few weeks -- highlighted by the debt ceiling debacle; the downgrade of US credit worthiness; the wild gyrations in the stock market and the wholly inadequate growth in the US job market in June and July -- all seem to point to one thing: the economic crisis that began in 2008 is far from over.

Worse still, given the political gridlock in Washington and the inability and/or unwillingness of the leadership on both sides of the political aisle to face the real crisis we face today -- the jobs crisis -- the prospects for a meaningful recovery seem remote at best. Many economists predict that the US will slide back into a recession. This is bad news for the millions upon millions of Americans who are out of work; bad news as well for the millions of young people just entering the work force. For the first time since the Great Depression, we face the ugly prospect of the loss of skills that often comes with long term unemployment or the lack of meaningful career opportunities for our youth.

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One would think that in the face of such a calamity our government would do everything within its power to expand or at least maintain the workforce. But with the current Administration having embraced the mantra of deficit reduction and budget slashing, and with one branch of Congress ideologically opposed to government intervention in the economy, government layoffs, especially at the state and local level, are actually pushing up the rate of unemployment.

Over three quarters of a century ago, when faced with a similar jobs deficit, Franklin Roosevelt used the power of the federal government to do just the opposite -- to put people to work. Under the auspices of such New Deal programs as the Civilian Conservation Corps (CCC) or the Works Progress Administration (WPA) millions of Americans found meaningful employment restoring our nation's forests and watersheds and building the economic infrastructure we needed to grow the economy well into the future. Equally important, the skills required to build the 1000s of bridges, roads, schools, airports, dams and other key pieces of economic infrastructure necessary for a modern economy were not lost to that generation.

FDR did this because -- as he said in his first inaugural -- the most immediate and primary tasked needed to meet the economic emergency was to put people to work. This not only led to a significant drop in the unemployment rate (by more than 10 percent in his first term), it also helped fuel a period of economic expansion that would average 14 percent per year for the next four years.

Thanks to these efforts, the American people could look to the future with confidence rather than fear. Yes, times were hard. But under the leadership of the Roosevelt Administration, the federal government was engaged in an active effort to provide real jobs -- not handouts -- to millions and the industrial expertise we needed to meet the challenges of the Second World War were in place at the critical hour.

The national unemployment rate has now been at roughly 9 percent for more than two years. By any measure such a statistic -- which tells us little about the millions of under employed or those who have given up looking for work -- constitutes a national crisis. Yet all we hear about these days in Washington is the need to cut government spending (including federal aid to states) and reduce the deficit. Following this false logic will lay off more workers in the midst of the worst economic crisis since the Great Depression. Given the dire state of affairs, the American people are right to fear the future. In addition to a jobs deficit, we now face a deficit of leadership at a time when we can least afford it.

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute.

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